Taking China's risks seriously

A static watch gives the right time twice a day. But it is of no use for the rest of the time. This fact is worth keeping in mind when looking at China's economy this year. For much of the last decade some people have predicted imminent doom and gloom for China. But their predictions are like reading the time by a static watch.

China has continued to grow from strength to strength. Its economy has soared. Its influence has grown. And all this has benefited Asia as well as the rest of the world.

The question then is: Is 2011 the year when problems in China will emerge? Is this the time when the static watch is right?